HD, high-speed data service to drive strong growth in last mile fiber

A new study finds that IPTV, HDTV and VOD are spurring service providers to upgrade their access networks with the capacity of fiber

Higher speed data services and new video offerings such as HDTV, IPTV and video on demand (VOD) will spur worldwide fiber access equipment to reach $1.9 billion in 2009, according to a new study from IDC.

The emergence of triple play — the integration of voice, video and data services on a single broadband connection– is driving service provider demand for more access network bandwidth. IPTV, HDTV and VOD are driving service providers around the world to upgrade their access networks with the capacity of fiber and the equipment that goes with it. A fiber access network refers to the “last mile” technology that connects optical fiber directly to consumers and businesses. In terms of technology, choices for fiber access will be drawn clearly along regional lines.

The IDC study, “Worldwide Fiber Access Equipment 2005-2009 Forecast and Analysis” forecasts the five-year revenue opportunity for fiber access equipment from 2005 to 2009.

Other key findings include:

  • The worldwide fiber access networking market will grow at a 16.6 percent compound annual growth rate between 2004 and 2009.
  • Ethernet passive optical networking technology has quickly become the technology of choice in Japan.
  • Video is a key driver for the move to fiber access in the United States and Europe and to a lesser extent in Asia.

For more information, visit www.idc.com.

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